Nippon Steel Halts Muroran Blast Furnace Due to Fire
Nippon Steel, Japan’s largest steel producer, stopped the Muroran blast furnace following a fire at the hot blast stove on December 1. The fire was quickly extinguished, but the company cannot confirm when operations will resume. The Muroran mill produces 1.24 million tons of crude steel annually, primarily serving carmakers. The facility had just restarted operations in late November after repairing a steel slag leak.
Impact on Japanese Steel Demand and Automotive Sector
Japan’s crude steel demand is projected at 20.23 million tons in Q4, down 2.4% from last year. Rising material costs and labor shortages are reducing construction demand. Meanwhile, automotive sector demand is unlikely to recover soon, further straining supply chains. Analysts warn that extended Muroran shutdowns could disrupt domestic steel markets and increase import reliance.
SuperMetalPrice Commentary:
The Muroran blast furnace fire highlights Japan’s vulnerability to production disruptions in high-capacity steel facilities. Nippon Steel’s quick response mitigates safety risks, but the event may tighten domestic steel supply, especially for automotive manufacturers. Investors and market watchers should monitor output resumption timelines and potential ripple effects on steel pricing and import demand.
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